One of the many challenges that marketing managers can face is a form of a company mid-life crisis. Just as people do companies may find that after a certain amount of time, success and growth that they need to reevaluation their priorities and goals. Wal-Mart provides an example of a company mid-life crisis, as its growth after 2005 dropped to 2% and faced a growing set of major competitors. Just a people can turn a mid-life crisis into a positive midlife transition, Wal-Mart can potentially use holistic marketing to successfully adapt to a competitive and dynamic economic environment.
Just as in a person’s mid-life crisis, Wal-Mart has several symptoms which may be attributed to a mid-life crisis. As an example, Wal-Mart has experienced a recent decline in growth, down to a mere 2% for the years after 2005 to 2007, similar to a person’s declining health and productivity as they age (Doheny, 2009, p. 2). Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value (Kotler & Keller, 1 - Defining Marketing for the 21st Century, 2014, p. 4). Marketing is much more than just selling a product, and keeping and growing the number of customers is an integral part of a successful marketing strategy (Kotler & Keller, Marketing Management, 2012, p. 4).
Another symptom of Wal-Mart’s mid-life crisis is a healthy growth amongst its competitor’s, similar to a person’s change in social relationships (Doheny, 2009, p. 2). Wal-Mart is experiencing declining demand as compared to its competitors (Kotler & Keller, 1 - Defining Marketing for the 21st Century, 2014, p. 7). Declining demand, consumers choosing to buy the...
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...mpetitive and dynamic economic environment in a way that allows it to gain an edge on its competition, now and in the future.
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The purpose of this memo is to show the affects of how Albertson’s is trying to implement many strategies in order to try, and compete with its powerhouse competitor Wal-Mart. This memo will contain information on steps Albertson’s is taking to gain back some of the market share that Wal-Mart has swallowed up. It will also describe Albertson’s planned innovations that will be what determines their success. Lastly it will discuss how through IT as well as a successful implementation of satisfying consumers demands, will possibly allow them to compete with the ever so powerful Wal-Mart.
Wal-Mart’s competitive environment is quite unique. Although Wal-Mart’s primary competition comes from general merchandise retailers, warehouse clubs and supermarket retailers also present competitive pressure. The discount retail industry is substantial in size and is constantly experiencing growth and change. The top competitors compete both nationally and internationally. There is extensive competition on pricing, location, store size, layout and environment, merchandise mix, technology and innovation, and overall image. The market is definitely characterized by economies of scale. Top retailers vertically integrate many functions, such as purchasing, manufacturing, advertising, and shipping. Large scale functions such as these give the top competitors a significant cost advantage over small-scale competition.
Mallaby admits Wal-Mart can treat their employees and other retailers unfairly, but as a result everyone can share in the 50 billion in savings that American shoppers consume annually. The pay that employees get is the price they must pay for low priced merchandise. Because of the minimal pay to employees, Wal-Mart strengthens its’ consumer buying power. Giving the American shoppers the savings they need, Wal-Mart’s has ultimately been them successful. Wal-Mart has potentially wiped out the middle class as an employer, but the employees can now work and ...
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According to Smithson, Walmart can expand its markets to new and emerging markets especially in the third world countries, which can significantly increase its revenues. Secondly, the company can reform is employment practices and improve the quality standard and in doing so, attract more customers and improve its brand image. On the other hand, the company faces threats such as the rising healthy lifestyle trend I that the company in most cases does not provide customers with healthy goods. At the same time, the company can capitalize on this aspect and increase its revenues. Aggressive competition from other discount retailers such as Target creates a great threat to the company (Smithson, 2015).
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As a result of the above they were giving less importance to customer satisfaction and customer relationship building. This form of strategy conformed to short term business motives. In a globalised and highly competitive world, modern marketing is about concentrating ...